SECTION 4. PROCEDURE

.01 Relief for Unnecessary QTIP Elec- tion . In the case of a QTIP election within the scope of section 3.01 of this revenue procedure, the IRS will disregard the QTIP election and treat it as null and void for purposes of §§ 2044(a), 2056(b)(7), 2519(a), and 2652. The property for which the QTIP election is disregarded under this revenue procedure will not be includible in the gross estate of the surviving spouse under § 2044, and the spouse will not be treated as making a gift under § 2519 if the spouse disposes of part or all of the income interest with respect to the property. Finally, the surviving spouse will not be treated as the transferor of the property for generation-skipping transfer tax purposes under § 2652(a).

.02 Procedural Requirements for Relief to Treat QTIP Election As Void .

(1) Taxpayer satisfies the requirements of this section by submitting the information required by this section in connection with (a) a supplemental Form 706 filed for the estate of the predeceased spouse, (b) a Form 709 (United States Gift (and Generation-Skipping Transfer) Tax Return) filed by the surviving spouse, or (c) a Form 706 filed for the estate of the surviving spouse. A supplemental Form 706 filed for the estate of the predeceased spouse may be filed only by a person permitted to do so (see § 20.6018–2) and only if the applicable period of limitations (whether on assessments or claims for credit or refund) has not expired with respect to the return of the predeceased spouse.

(2) Taxpayer must notify the IRS that a QTIP election is within the scope of section 3.01 of this revenue procedure. Notice is provided by entering at the top of the Form 706 or Form 709 the notation “Filed pursuant to Revenue Procedure 2016–49.” (3) Taxpayer must identify the QTIP election that should be treated as void under this revenue procedure and provide an explanation of why the QTIP election falls within the scope of section 3.01 of this revenue procedure. The explanation should include all the relevant facts, including the value of the predeceased spouse’s taxable estate without regard to the allowance of the marital deduction for the QTIP at issue compared to the applicable exclusion amount in effect for the year of the predeceased spouse’s death. The explanation should state that the portability election was not made in the predeceased spouse’s estate and include the relevant facts to support this statement.

(4) Taxpayer must provide sufficient evidence that the QTIP election is within the scope of section 3.01 of this revenue procedure. Evidence sufficient to establish that the QTIP election was not necessary to reduce the estate tax liability to zero based on values as finally determined for federal estate tax purposes and that the executor opted not to elect portability of the DSUE amount may include a copy of the predeceased spouse’s estate tax return filed with the IRS. If the executor of the predeceased spouse’s estate was not considered to have made a portability election

because of a late filing of that return, evidence may consist of the account transcript reflecting the date the estate tax return was filed.